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Rachel Reeves' Budget has scared off UK retail traders, survey finds

2025-10-12 10:22:26 By

A new survey indicates that retail traders are shying away from the UK market following Chancellor Rachel Reeves' recent Budget.

The study by Graniteshares revealed that over a quarter of retail investors (26%) have reduced their stake in the UK after the Budget announcement, as reported by City AM.

Moreover, out of the 1,000 British retail investors surveyed last month, one in five stated they are likely to decrease their investment in UK markets by 2025.

"Economic news in the UK has been relatively downbeat over the past six months and last year’s Budget has been criticised by businesses," according to Catarina Donat Marques, head of European retail strategy at Graniteshares.

The October Budget introduced by Reeves incorporated new taxes amounting to £40bn, including an increase in capital gains tax, leading to a substantial decline in business confidence. The strength of the US dollar is another significant factor deterring retail investors from UK stocks – 27% are being put off due to this reason.

Following speculation about the Budget since late September 2024, there's been a noticeable drop in the value of the pound from $1.34 to just $1.24 today.

In the long term, the sentiment among retail traders towards UK markets remains bleak, with 61% expressing disappointment with the performance of UK markets over the past three years and 24% admitting to diverting their investments elsewhere as a consequence.

In the previous year, the FTSE 100 saw a modest growth of only 5.7 per cent, in stark contrast to the S&P 500's impressive return of 23.3 per cent. This disparity, largely due to the dominance of the US-based 'Magnificent Seven', has prompted a significant number of UK retail investors to turn their attention to American investments.

Indeed, approximately 23 per cent of UK retail traders have reported a decrease in the proportion of their investment portfolio dedicated to British stocks and funds over the past three years.

However, despite this trend, a third of these investors estimate an increase in their UK investments.

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Retail & Consumer

Eden Project to axe 80 jobs amid 'considerable economic challenges'

2025-10-12 10:22:26

The Eden Project, one of Cornwall's most popular tourist and environmental attractions, is cutting up to 80 jobs. The losses represent around a 20% reduction in its current workforce of 400, equating to one in five roles. It is the second round of job cuts announced by the Bodelva attraction, which has been operating at a loss, in less than two years. In May 2023, Eden Project revealed that 20 positions were at risk, although efforts were made to minimise job losses through voluntary redundancies. At the time, management attributed the proposed redundancies to the impact of the cost-of-living crisis on visitor numbers and revenues over the preceding year, as well as organisational restructuring aimed at creating more efficient ways of working to support future growth plans. The attraction, known for its tropical and Mediterranean biomes, environmental initiatives, and Eden Session music events, has once again confirmed job cuts due to "considerable economic challenges". A decline in tourism, reduced visitor numbers, and escalating operational costs have been cited as reasons for the decision. A spokesperson for the Eden Project told our sister site CornwallLive: "The Eden Project is initiating proactive measures to ensure the long term economic stability of the organisation. We have explored every option and will create a new structure as a result of considerable economic challenges. This will involve reducing our payroll by an estimated 20 per cent, equivalent to around 80 redundancies, including 19 who have elected to leave voluntarily through voluntary redundancy or retirement. "A number of factors including the contraction of the visitor economy across the south west as well as significantly increased costs to businesses have made this process necessary. This process will set us on a path to continue our vital work as an environmental charity and a thriving visitor destination for our second quarter century and beyond." "The Eden Project will now begin a consultation period lasting at least 45 days. Affected team members will be supported by the Members Assembly, the Eden Project's staff representative body, and every effort will be made to minimise the number of job losses, with alternative roles or retraining offered where possible." As highlighted by BusinessLive, this announcement arrives as the charity reported a £1.5m loss for its latest financial year, despite a rise in visitor numbers, with over 604,000 guests in the year ending March 31, 2024, up from just over 551,000 the previous 12 months. Turnover increased from £23.2m to £24.2m due to the rise in visitor numbers. However, this growth was not enough to prevent pre-tax losses from nearly doubling, from £868,000 to £1.5m, as revealed in recently filed accounts at Companies House. This news comes as the Eden Project is expected to open a new location in Morecambe, Lancashire, between 2027 and 2028. At the end of January 2022, Lancashire City Council granted planning permission for the £125m project. Initially expected to open in 2024, the project has faced several delays but is anticipated to create over 400 direct jobs and support a further 1,500 employment opportunities in the region. The Eden Project North will be situated on the site of the former Bubbles leisure complex, near the Winter Gardens and Midland Hotel. When the development was approved by the local authority, it was estimated that the project would inject £200m annually into the local economy. In a statement approved by its board, Eden commented on its financial loss, stating: "During this financial year, we emerged from the aftershocks of Russia invading Ukraine and the knock on effect on global energy prices, to a period of receding inflation and lowering interest rates. "However, consumer confidence is still negative, but significantly improved over its all time low in October 2022. All of these factors impacted the trading results of Eden Project Limited during 2023/24. "Given the challenging conditions from last year and ongoing macro-economic uncertainty, we will continue to diligently control our resources but invest back into our principal asset, the Eden Project site, where necessary."

Retail & Consumer

UK hospitality sector reels from Labour's budget despite global economic shifts

2025-10-12 10:22:26

The high-stakes drama of a global trade war vies for attention alongside Keir Starmer’s EU reset, looming interest rate decisions and Nigel Farage’s lead in the opinion polls. News is fast-paced, and the focus quickly shifts. Politicians are often the first to want to 'draw a line under it' and move forward; whether the 'it' refers to Starmer's potential breach of 2020 lockdown rules or his government's disastrous October budget, as reported by City AM. Thankfully, politicians don't have the final say on when a story loses its relevance. For this reason, we spotlight on our front page today an issue that once dominated discussions before being overshadowed by newer or bigger news; the crisis facing the UK’s hospitality industry. According to industry body UKHospitality, the sector employs 3.5 million people and contributes nearly £100bn to the UK economy, including over £50bn in tax receipts. These figures represent some massive companies, both private and listed, numerous family-run groups and tens of thousands of smaller, independent operators. However, they all face the same hurdles; tight margins, inflation-driven cost increases, overheads, high labour costs and – collectively – a large number of relatively low-paid staff. These factors make it a challenging sector even in the best of times, and these are not the best of times. The industry has strongly opposed the tax and labour cost changes announced in the Budget, but their concerns seem to have been ignored. From April, nearly 800,000 hospitality workers will be subject to employer national insurance contributions, adding an estimated £1bn burden on the sector. This has led to job cuts, recruitment freezes, reduced opening hours, cancelled investments, or even permanent closures for some establishments. Manchester-based hospitality entrepreneur Sacha Lord expressed his concerns in a poignant letter to Rachel Reeves, stating, "this is not just about businesses, it’s about jobs, livelihoods, and communities, and time is running out." The industry has proposed measures to the Treasury to mitigate the NICs changes' impact, yet there seems to be little response. Despite the Chancellor claiming that growth is her "number one mission" and justifying the distressing tax changes as necessary for public finances, the hospitality sector remains unconvinced, as do I.

Retail & Consumer

Major new plans could bring big changes to popular New Mersey Shopping Park

2025-10-12 10:22:26

Significant changes could be on the horizon for a well-known Liverpool retail park. The New Mersey Shopping Park, a mainstay in Speke since its establishment in 2018 as part of a multi-million pound development, houses major retailers, eateries and leisure facilities such as Cineworld, Nando's and JD Sports. A request has been lodged with Liverpool City Council to modify previously approved planning permission concerning some of the park's buildings. The proposals, put forward by Speke Unit Trust - the owner of the shopping park - pertain to the eastern terrace and involve a revised layout of existing and approved floorspace. The plans are designed to accommodate the needs of two current businesses - B&Q and Marks and Spencer (M&S). B&Q has stated that its current site on the retail park no longer aligns with its business model requirements, and the proposed changes would divide the unit it occupies to create a smaller shop site. M&S, which currently operates a separate food hall unit, is set to relocate to a larger premises comprising part of the existing B&Q unit and an extension onto part of the current B&Q garden centre. This move will enable M&S to house its food, clothing and home offerings under one roof, reports the Liverpool Echo. Currently, M&S employs 44 individuals at its existing Foodhall outlet. The proposed store would provide employment for a total of 162 people in a combination of full-time and part-time roles. If given the green light, the plans would involve a partial demolition of the current B&Q garden centre to make way for new pedestrian and vehicle entrances associated with M&S.

Retail & Consumer

Watches of Switzerland optimistic about US market growth post-Trump tax cuts

2025-10-12 10:22:26

Watches of Switzerland has conveyed a positive outlook for the luxury market in Europe, while highlighting sustained progress in the US, indicative of the global luxury sector's slow emergence from a two-year slump. According to the watch retailer, the once-stressed luxury market is now showing signs of stability, despite persistent pressures such as decreasing disposable income and evolving consumer tastes, as reported by City AM. Amidst the cost-of-living crunch, there is a notable trend of European shoppers, particularly those from Generation Z, gravitating towards pre-owned luxury items over new ones. This shift, coupled with a reduced pace in China, has caused a substantial retraction in the luxury marketplace. However, Watches of Switzerland, Britain's leading luxury watch retailer, reported that demand for premier luxury brands remained "strong" during the third quarter, with further acceleration observed in the American market. The company acknowledged that the increase in its Q2 revenue by 24% to £355m was primarily propelled by its performance in the US sector. The tax reductions enacted under former US President Trump, aimed at high earners, are largely anticipated to benefit luxury names with stakes in the American market. Sharing an optimistic business update that will undoubtedly encourage luxury investors still elated by favourable outcomes from industry peers Richemont and Burberry recently, Watches of Switzerland projects an upward turn. Anticipating a recovery phase, RBC analysts have described the latest financial figures as "reassuring", assigning the stock with an 'Outperform' rating. Despite this positive assessment, they recognized that the watch industry remains caught in a cyclical downturn for the present time. Just prior to the festive season, experts had anticipated a revival in the luxury domain, forecasting a revenue increase of five to six per cent by 2025. "Whilst luxury has generally been a tough sector [in the second half of 2023 and in 2024]... the setup is improving," remarked RBC analysts Piral Dadhania and Richard Chamberlain. Nevertheless, the popularity of pre-owned items is expected to persist. Watches of Switzerland referenced the "encouraging performance" of its second-hand business operations within their report.

Retail & Consumer

Dunelm announces CEO's departure, highlights robust half-year financial growth

2025-10-12 10:22:26

Dunelm's CEO, Nick Wilkinson, has announced his decision to step down after seven years at the helm, during which he led the company through strategic changes, digitalisation, and the pandemic. Wilkinson will remain with the FTSE-listed firm until a successor is appointed. Dunelm has seen consistent sales growth over recent years, thanks to its personalised, relatively low-cost homewares that have proven popular with consumers, as reported by City AM. Alison Brittain, Chair of Dunelm, praised Wilkinson as a "tremendous leader for Dunelm", adding that he had successfully guided the group through the global pandemic, driven a significant shift in the digital offer, established strategic capabilities across the business including in tech and data, and maintained the unique, entrepreneurial culture which makes Dunelm so special. She added: "Nick will continue to lead the business over the coming months as we transition to a new CEO, maintaining a focus on delivering long-term, sustainable growth for all stakeholders." Wilkinson commented: "It feels like I’m approaching the right time to step away from full-time executive life [but] I’ve never been more confident in the opportunities ahead for this special brand. There remains lots to do, and much to learn, as Dunelm continues to grow and develop." The retailer also announced strong results for the 26 weeks ended 28 December, with a 2.4 per cent increase in sales. Dunelm has reported a rise in its market share in homewares to 7.8%, marking a year-on-year increase of 0.3%, alongside a customer base growth of 4.3%. The retailer's pre-tax profit edged up by 0.2% to £123.1m, while diluted earnings per share increased by 0.9% to 44.6p. CEO Wilkinson commented on the company’s resilience: "Our performance over the first half reflects the growing attraction of the Dunelm offer for a wide range of customers, and the quality and resilience of our business model." He further noted the company's success despite retail challenges: "Amidst a challenging backdrop for retail, those attributes have helped us deliver increased sales, a strong gross margin, and both customer and market share growth." Wilkinson has expressed his support for the Government’s higher living wage initiative, advocating that an increase is beneficial for the overall economy. Nonetheless, Dunelm is faced with various inflationary pressures, including a new packaging tax and a rise in employer’s national insurance contributions, mitigation efforts for which have led to only partial offsets through productivity improvements.

Retail & Consumer

Support your local venue – brewing industry joins forces to launch beer to help bars and pubs through costs crisis

2025-10-12 10:22:26

The North's bars and venues are under huge pressure as the costs crisis goes on – now a group of leaders from the beer industry has joined forces again to launch an ale to give those venues a February boost. It’s been a brutal time for the hospitality industry as costs keep rising, hitting customers and venues alike. Just this week we reported that Liverpool’s Carnival Brewing Company had gone into administration with its assets being put up for sale. Last year, David Beattie, senior client director at Continuous, teamed up with Manchester's Track Brewing Co and a group of key brewing suppliers to launch Fusion, billed as “a pale ale brewed by the community for the community”. Supporters were urged to visit their local bars and pubs to try the beer for themselves. The beer was such a success that Continuous and Track, alongside Yakima Chief Hops, yeast and fermentation specialists White Labs Copenhagen, and Norfolk-based malt suppliers Crisp Malt, have brought it back this year – in cans as well as on keg. The can says: “We know it’s no magic wand but craft beer is built on connection and community and we are honoured to be a part of it.” David Beattie said the February launch date was chosen because pubs and bars need a boost in the early part of the year after Dry January and when customers are still “tightening their belts” amid the cost-of-living crisis. At last night's launch in the Buyers Club in Liverpool, he said: “Something like this to drive footfall in February, to really kickstart February and start that bounceback ahead of hopefully a prosperous year for them, is absolutely critical. They need to start February with real momentum. “We had 100+ venues serving Fusion last year ,and made 60 hectolitres of beer. The reaction was absolutely incredible. We were blown away by the sales last year and the appetite for everyone to be involved this year, so we've increased the batch size from 60 hectolitres to 100 hectolitres, which is equivalent to about 17,500 pints. “It’s available in kegs and cans this year, which is brilliant, so we can support more independent venues. But it's just brilliant to see it progress. It's brilliant to see the excitement build around the project from all the partners, from all the venues that took part, the interest from new venues and the interest from consumers who tried it last year and were wondering when we were going to launch it this year.” Hospitality firms already battling high costs, and whose customers have less money to spend, remain worried about the impact of the upcoming changes to National Insurance contributions. Just yesterday, UKHospitality chief executive Kate Nicholls welcomed the latest interest rate cut but said: “If the Government really wants hospitality businesses to help deliver its growth agenda, it should delay the changes to employer NICs. “After the sector was the biggest contributor to economic growth in November, these tax changes will slam the brake on the sector’s growth potential and instead force businesses to cut investment, cut jobs and increase prices.” David said the message from Fusion was simple – support your local venue. He said: “There are about 39/40 venues shutting per week, which sounds like such a dry figure to people when you're talking to them. People only really notice when it's their pub, or their local bar, or their favourite place, or the place they had their first date or they meet up with their friends, that shuts. “It's really only then that people take notice. Which is a real shame, because if you don't go and support these places, and you don't drink there and stay for the extra round, and invite your mates or suggest it as somewhere to meet up with friends, these venues do go. Which is absolutely criminal. If you care about these venues, go out and support them.”

Retail & Consumer

Shein to slash IPO valuation by $16bn as it faces new trade barriers

2025-10-12 10:22:26

Fast fashion behemoth Shein is reportedly considering lowering the target valuation for its anticipated London IPO as it faces new trade barriers in the US and mounting political scrutiny in the UK. The Chinese-founded retailer, which is expected to go public in London later this year, could be impacted by harsh new trade policies from the White House that aim to eliminate a "de minimis" exemption for small packages entering the US, one of Shein's largest markets, as reported by City AM. This policy change is likely to increase costs and affect the firm's profit margins. Company executives are now thought to be contemplating a reduction in the company's target valuation to approximately $50bn for the initial public offering, which is about $16bn less than its most recent valuation in a 2023 private funding round, as per Reuters, quoting sources familiar with the matter. The removal of the de minimis tax break by Donald Trump has added to the pressure on Shein, following months of outrage from advocacy groups over its intention to list on the London Stock Exchange. Shein has faced persistent accusations of utilising forced labour within its supply chain and procuring cotton from Xinjiang, where the Chinese government is alleged to have oppressed the Uyghur minority. Legislators in Westminster have raised concerns about whether the City of London should welcome the listing of such a company given its controversial human rights record. Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented on the recent developments surrounding Shein's planned London listing: "Shein’s planned London listing was already mired in controversy and now it’s hit by fresh tariff turmoil, becoming ensnared in clampdowns on e-commerce giants." She further added, "This looks set to be a big bump in the road for Shein’s controversial planned listing on the London Stock Exchange. If Shein can’t compete so easily on price in major markets like the US and the EU, it’ll be a much harder sell, particularly given it also faces claims of environmental recklessness and poor working conditions in its supply chains." Last year, Reuters reported that Shein had confidentially filed papers with Britain’s Financial Conduct Authority (FCA) in early June. However, the regulator has yet to approve the plans, taking longer than typically expected in its deliberations.

Retail & Consumer

Popeyes and Wingstop announce plans to open dozens of new UK restaurants

2025-10-12 10:22:26

Fast-expanding chains Wingstop and Popeyes have both unveiled ambitious plans to broaden their reach across the UK, generating thousands of job opportunities. Popeyes has detailed plans to nearly double its UK presence by launching over 45 new restaurants, as reported by City AM. This expansion will bolster its footprint in cities such as Birmingham, Leeds, and Bristol, while also growing further in Manchester, Liverpool, London, and Scotland. The company anticipates creating approximately 2,500 jobs and aims for sales exceeding £200m in 2025. Financial accounts released in October 2024 for the fiscal year 2023 showed a revenue increase from £15m to £58.1m. The firm has now reported that its sales soared to over £118m in 2024 with the opening of 33 new locations. Tom Crowley, CEO of Popeyes UK, stated: "2025 is set to be another incredibly exciting year for Popeyes UK®, building on the significant successes our team generated in 2024 as we ended the year with an annual sales run rate of £150m." He added: "I would like to take this opportunity to thank the whole Popeyes team for their continued hard work and dedication throughout what was an incredibly busy year which saw us become the UK’s fastest growing QSR brand." He concluded: "Our ambitious roll-out strategy – which will see us open, on average, close to one new site per week in the coming 12 months – will mean that we can bring joy to even more customers across the country, from breakfast through to late night." "At the same time, we are looking forward to welcoming around 2,500 new team members in the year ahead to support our expansion plans, all the while continuing our clear focus on exciting menu and technology innovation. Underpinned by the proven global appeal of the Popeyes brand and our highly acclaimed customer proposition, the growth potential of the business is significant, and we have a medium-term target to scale to more than 350 sites, establishing Popeyes UK as one of the largest QSR [quick service restaurant] operators in the UK market." Concurrently, Wingstop, another popular chicken chain in the UK, has unveiled its ambitious plan to launch at least 20 new outlets this year, generating hundreds of job opportunities. This announcement comes a month after Wingstop's UK division was acquired by a US private equity firm for over £400m. Wingstop UK plans to open at least 10 new locations in the first half of the year, including dine-in restaurants in Swansea, Newcastle, Lakeside shopping centre in Essex, Streatham in south London and Cardigan Fields in Leeds. Additionally, a new delivery kitchen will be opened in Brighton. Currently, Wingstop operates 57 sites across the UK, employing more than 2,500 people, following an aggressive expansion strategy. Last year, the company opened 18 new locations, including its largest site at Westfield Stratford in east London. Chris Sherriff, Chief Executive of Wingstop UK, expressed his enthusiasm for the company's trajectory: "2024 has been a landmark year for Wingstop UK, marked by record site openings, a new flagship location and industry accolades." He continued, "This year we are poised for even greater growth, with plans to expand into new regions and create hundreds of jobs." Sherriff also extended gratitude towards the staff: "Thank you to the brilliant work of all our employees, who drive us to keep growing, whilst providing a personalised and authentic experience to wing-lovers up and down the country." He concluded with optimism, "There is huge momentum and we can’t wait to bring our flavours to more areas across the UK." In December, City AM reported that Wingstop had significantly increased its sales amidst its ongoing expansion in the UK, creating numerous job opportunities and returning to profitability. The restaurant chain, famed for its buffalo wings, disclosed a turnover of £84.6m for the 12 months leading up to 31 March, 2024, as per documents filed at Companies House.

Retail & Consumer

Ritz Hotel's financial woes deepen with £75m losses since 2019, despite Qatari ownership

2025-10-12 10:22:26

London's prestigious Ritz hotel has accumulated losses exceeding £75m since it last reported a profit, recent disclosures have shown. The opulent establishment recorded a pre-tax loss of £10m for 2023, according to accounts submitted over five months late to Companies House, as reported by City AM. This loss follows a deficit of £16.5m in 2022, £32m in 2021, and £27.3m in 2020, with the hotel's last pre-tax profit being £2.4m in 2019. The belatedly filed accounts for 2023 also indicate that The Ritz's turnover remained unchanged at £36m for the year. The hotel is now due to submit its 2024 accounts by the end of September. However, timely submissions to Companies House have not been made since June 2022. The five-star establishment was purchased by Qatari businessman Abdulhadi Mana Al-Hajri from the billionaire Barclay brothers for an estimated £700m in March 2020. Despite ongoing financial setbacks, The Ritz distributed dividends totalling £255,000 during the year. In a statement approved by the board, it was noted: "The level of business and financial position of The Ritz Hotel for 2023 was in line with the expectations." "It is the company’s intention to continue to increase its revenues by expanding its existing client base." "The extensive development project that started in 2020 continued throughout the year." "The future development of the project also includes the complete refurbishment of the existing building including guest rooms and suites and food and beverage outlets." In August 2024, City AM revealed that Claridge’s Hotel experienced a surge in sales exceeding 20% in 2023, buoyed by a "strong" recovery post-Covid-19 and the fruition of a significant expansion project. The prestigious five-star establishment in London announced a turnover of £119.3m for the financial year, a substantial increase from £98.1m in 2022. Additionally, the hotel's pre-tax profit soared from £2.2m to £7.2m. Conversely, in the same period, City AM reported on the challenges faced by The Savoy Hotel amid heightened competition within London’s luxury hotel sector, with its pre-tax losses expanding during 2023. The iconic hotel disclosed a loss of £17.9m for the financial year, following a pre-tax loss of £12m in 2022.

Retail & Consumer

North East set to host trial for Amazon drone deliveries

2025-10-12 10:22:26

Tech giant Amazon is stepping up plans to launch its drone delivery service in the UK through a trial in a north East town. The global online retailer is advancing with planning applications to Darlington's local council while simultaneously seeking approval from the Civil Aviation Authority (CAA) for its Prime Air drone-delivery service. Having already taken off at two locations in the US, Prime Air uses a fleet of drones to whisk packages to customers within an hour. Beyond seeking official permissions, Amazon plans to reach out to Darlington's residents, addressing questions and sourcing feedback about the novel service. The move is also set to create a number of jobs, with Amazon confirming a recruitment drive will start once approvals have been granted. An Amazon spokesperson said: "We are ready and excited to make drone delivery a reality for our UK customers. We have built safe and reliable drone delivery services elsewhere in the world in close partnership with regulators and the communities we serve, and we are working to do the same in the UK. "We are announcing that Prime Air is taking steps to start planning for initial flights from our fulfilment centre in Darlington. "While there is still much work to do, this is an exciting step forward. A planning application will be lodged with the local authority which will seek permission to build our flight operations facilities at the site, along with applying for authorisation from the Civil Aviation Authority to fly a drone in the airspace. "Once those agreements are in place, we will be able to begin hiring team members to launch drone delivery. Amazon has announced that the service will be optional within its catchment area, and eligible customers will have the chance to opt-in via their existing Amazon account. The firm did not provide a specific timeline for the service's launch. Amazon added: "We have nothing more to share (on timeframe) at this time, but we will engage with the community to answer questions and collect feedback as we seek to offer this new option for delivery."